Middle Island Resources expands golden footprint in WA project
Link copied to
Aspiring gold developer Middle Island Resources has been busy of late at its Sandstone project in Western Australia where it has been increasing its landholding.
Middle Island (ASX:MDI), which present next week at the RIU Resources Investor Roadshow in Sydney and Melbourne, has recently been buying up land around Sandstone to expand its gold processing operation.
Sandstone, which lies 600 km northeast of Perth and was acquired by Middle Island last year, includes two mining leases which feature processing plants.
Earlier this month, Middle Island inked an option deed with private company SLS Exploration to acquire a gold project known as Dandaraga for $200,000.
Dandaraga covers an area of 605 hectares and lies 16 km southeast of Sandstone and 4 km south of the haul road linking the Lord Henry and Lord Nelson deposits with Middle Island’s 600,000 tonnes per year gold processing plant.
Middle Island managing director Rick Yeates says Dandaraga provides an opportunity to extend and enhance the proposed production schedule for the Sandstone gold processing operation.
The news comes after Middle Island inked an option deed in June to acquire 100 per cent in the Wirraminna gold project from prospectors Kym McClaren and Karl Mansen for $300,000 payable at any time within a four-year period.
Wirraminna, which hosts an existing 10,000-ounce gold resource, lies immediately adjacent to Sandstone and within 1 km of its processing plant.
Wirraminna has substantial gold exploration potential associated with three intersecting, high grade, mineralised structures.
Better previous drilling intercepts at the project include 11m at 23.8 grams per tonne gold, 16m at 14.6 grams per tonne gold and 19m at 4.85 grams per tonne gold.
The acquisition represents an opportunity to access higher grade open pit mineralisation that may provide a catalyst for recommissioning the Middle Island’s gold processing plant, Mr Yeates said.
Sandstone has a rich history, producing 1 million ounces of gold from surface, underground and open pit operations in the area since the 1890s.
Most recently, Troy Resources produced 508,000 ounces of gold at the project between 1999 and 2010 before the operation was mothballed in September 2010.
Southern Cross Gold acquired the project from Troy in 2012 before the company merged with Poly Metals to form Black Oak Minerals. This was placed into administration in 2015 and subsequently liquidation.
Middle Island acquired the project from the receivers of Black Oak for $2.5 million back in July last year.
Shares in Middle Island were trading at 2.1c yesterday and has a market cap of around 410 million.
The RIU Resources Investor Roadshow, which will showcase 19 minerals companies, will be held in Sydney on Tuesday September 26 and Melbourne on Thursday September 28.
The event will make available up to 250 investor and broker passes at each venue providing the opportunity for the participating companies to promote their activities to investors.